Lego cuts 30 jobs in focus on profits

Lego is wielding the axe over 30 global marketing jobs to turn around disappointing profits and make a success of fresh product initiatives lined up for this year.

The redundancies are part of about 150 job cuts from its global operations that cover various functions and are scattered across the globe.

Seven UK-based global marketing positions out of a total of 30 UK-based jobs are to go at the company's offices in Slough. They include three campaign directors, hired only in the past year to roll out advertising campaigns for its key new product categories.

The other global roles are based in the US, Italy and the company's headquarters in Billund, Denmark, where 13 global marketers have been made redundant.

In addition, the company's senior vice-president for the Americas, Andrew Black, has been made redundant.

Lego last week began its biggest ever UK ad campaign to support Make & Create, the umbrella brand for its classic building blocks. Created by Rainey Kelly Campbell Roalfe/Y&R, the ads use the line 'What Will You Make?'

The firm stated: "In line with the Lego Company's intent to streamline and simplify decision-making and working processes, the global innovation and marketing division is making adjustments to its organisational structure.

As a consequence, 13 positions in the Billund office have been made redundant.

Locally we have just begun consultation with a number of staff and it is too early to comment further."

COMMENT

Lego's global marketing cuts come at a pivotal time. It announced last month that 2002 profits fell 1.2% and forecast that sales would not rise significantly this year. To reach its goal of becoming the strongest brand among families by 2005, it cannot take its brand heritage for granted. It has begun a strategy of grouping products according to lifestyle categories instead of age. Marketing of the brand into these lifestyle categories is crucial.

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